4:29pm:The dollar has just hit 92 US cents, up more than half a cent since Glenn Stevens spoke this afternoon and left out the opportunity to talk down the currency in a significant way.

So why is it pushing higher?

Macquarie Bank currency strategist David Forrester said the increase in confidence in the Australian economy is causing international investors to return to Australian dollar assets.

"The Aussie has fallen about 15 per cent over the past year, so investors feel more comfortable that it's probably not overvalued by a significant amount.

"The second factor was demonstrated today - that we no longer have a central bank talking down the currency."

As we highlighted earlier, the Australian dollar has also been attracting bids after China's softer-than-expected preliminary manufacturing activity data pointed to possible stimulus from the Chinese central government.

4:24pm: Strong performances from mining stocks has underpinned a 40 point, or 0.8 per cent, gain in the ASX 200 to 5376.8, while the All Ords was up 36 points, or 0.7 per cent, to 5387.2.

BHP jumped 1.8 per cent, Rio 2.1 per cent, and Fortescue 3.1 per cent after the iron ore price jumped overnight, and on increasing speculation that Chinese authorities would be compelled to act to arrest the slide in the country's economic growth.

The big banks all gained in line with the market, aside from Westpac which was up 1.2 per cent.

Telstra gained 1 per cent, and Woolies 1.9 per cent - seemingly at the expense of Wesfarmers, which dropped 0.4 per cent after the ACCC confirmed it had no issue with IAG buying the conglomerate's insurance arm.

The energy sector was pulled lower by a 2.8 per cent slide in Oil Search, while the listed property and IT sectors also fell.

Gold miners were the worst performers, dropping 1.3 per cent as a group after starting the day in the black.

As an aside - as you can see from the chart below, which shows SG’s forecast returns from some major markets for the rest of the year – avoid Australian, British and US stocks.

In a note looking specifically within European equity markets, the investment bank’s analysts say the 38 per cent surge since June 2012 means equities in the region are no longer undervalued: “the recovery from the European crisis is now almost complete”.

Nevertheless, the evidence from US and Japan suggests that valuations “could very well expand into ‘expensive’ territory, ahead of a tangible earnings recovery”.

And they see “huge potential” for profit recovery among European companies, where earnings remain32 per cent below their 2007 peak, against the US where corporate earnings are 11 per cent above.

“From 2015, European indices will benefit from stronger economic momentum, a weaker euro and a still accommodative monetary policy.”

They caution against non-eurozone countries like UK, Switzerland, Denmark and Sweden, which have recovered and acted as somewhat of a safehaven. They think Germany looks expensive.

And despite a pick-up in growth in the US, the S&P 500 performance in 2015 and 2016 “will likely be limited by a new cycle of Fed rate hikes” – with the same going for the UK’s sharemarket and rate hikes there by the Bank of England.

"There are some people who think that Australia is in a (housing) bubble, you can never be 100% sure .. but the price to income ratio has been around four times ... for about 10 years, so a very long running bubble if it is a bubble, most do not last that long.

He also said that the Australian dollar is still too high.

“What we have said, it is worth giving some thought to where the currency was when terms of trade were soaring … biggest since 1850s … we didn’t feel it was appropriate to try to limit that given the size of the event.

“When the terms of trade started to fall. We thought that was odd … happily enough the currency is now well done off its peak. From here it really depends what you think the fundamentals will do.

"Our assumption is that the terms of trade will fall further. We think commodity prices will be softer than where they have been in recent past.

"It will be quiet a surprise if that comes to pass if the Australian dollar doesn’t depreciate along with that.

“The long running equilibrium of the exchange rate is probably lower and we have been quiet consistent in saying that.

3:13pm:China stimulus talk is reaching a crescendo. IG's Evan Lucas says reports are emerging that the National Development and Reform Committee has approved five new railway projects, and there are rumours the NDRC is looking to add to these, particularly in urban areas:

Credit Suisse suggests the fact it is the NDRC announcing these development having not been given approval for any in the previous three months means China is pushing the button on stimulus.

Credit Suisse believes that cost for these projects is likely to be around 142 billion renminbi , which may explain the changes seen over the commodities space. Copper saw a bullish break, jumping 2 per cent in London and New York as the prospect of the world’s largest consumer of the industrial metal drove traders back.

Iron ore has also reached a 10-day trading high after an extraordinary day on the futures yesterday. The more we hear about ‘increasing domestic demand’ and the acceleration of infrastructure projects like the rail projects, we will see copper and iron ore moving higher still.

The other likely action from China as it tries to quell slowdown fears is the PBoC may relax its crackdown on lending. Today for the first time in a week the PBoC has lowered the fixing rate to CNY6.1440 from CNY6.1426 yesterday.

The talk from the floors in China is that the PBoC is canvasing the appetite for seven- and 14-day repo raising. Considering the volatility in the rates in June last year, particularly in the seven-day repo if it is well bid it will show that corporate demand is still supportive and that funding will continue. This again is short term positive.

2:57pm: Turning to the Australian economy, Stevens says he finds a "fascinating divergence between the views of foreign observers, especially in Asia, many of whom say to me ‘Australia is doing very well’ and the tone of the commentary at home, which is typically a lot more pessimistic." He continues:

My reading of the actual data is that they suggest that the economy has been doing a bit better than much of our domestic commentary over the past couple of years would have you believe, but not quite as well as many foreign investors seem to have thought.

Australia certainly weathered the financial crisis well, and with a real GDP some 13 per cent larger than it was at the beginning of 2009, compares well with many other advanced countries. It is the case, though, that growth while positive, has been running at a pace a bit below its trend pace for about 18 months now. The rate of unemployment has increased by something like a percentage point over the same period.

Looking ahead, as the resources sector's capital spending continues to fall, it will be desirable to see some other sources of growth strengthen. One is export volumes for resources, which are already growing strongly, as the additional capacity put in place over recent years becomes utilised.

For example, iron ore shipments have risen by about 85 per cent from their levels of five years ago, to around 1.5 million tonnes per day. Exports will rise further over the coming year or two, as additional resource projects are completed and, at the margin, some other areas face slightly less of a headwind from the exchange rate.

2:44pm: Reserve Bank chief Glenn Stevens says it is still a little too early to tell if the slowdown in China is a "large one".

"People are still too inclined to fret about what are monthly movements in PMIs and sometimes they fret even before movements in American data.

"The greater concern is the risks involved in the build up of credit in shadow banking in recent years.

"Recent credit events have focused on the possibilities of failure", he said in reference to the corporate sector.

He noted that recent indicators, including industrial production and retail sales, have shown possible signs of slower growth in the early part of 2014.

"Given that the growth target was more than met last year, and given that the Chinese New Year holiday period makes it more difficult to assess trends in the data, it may be a little too early to draw strong conclusions," he said.

"Spot prices for steel and iron ore have fallen lately though, on movements to date, seem within the range seen in recent years."

2:29pm:Will RBA governor Glenn Stevens use the high-profile platform of the Credit Suisse Asian investment conference in Hong Kong, where he's due to speak now, to jawbone again on the need for a weaker exchange rate?

He could certainly do so, says Westpac's chief currency strategist Robert Rennie.

While the Reserve Bank's senior officials, such as deputy governor Phil Lowe, have sidestepped opportunities to talk down the Australian dollar this year, the currency has continued to edge up. It pushed to a new year's high of US91.76¢ overnight.

Rennie says expectations of stimulus from the Chinese government is working in a "bad news is good news" sense to lift the Australian dollar.

2:23pm: US-focused oil and gas play Austin Exploration's share price has jumped 18.2 per cent, after earlier surging as much as 36.4 per cent, with trading volumes of over 138 million on the back of significant oil flows from its latest Eagle Ford shale well in Texas.

Austin’s first farm-out well with Halcón Resources recorded an initial production rate of 1066 barrels with an 87 per cent oil cut. The company has highlighted the potential for another 100 drilling locations on the Birch property.

Halcón is the latest venture from Floyd Wilson, founder of Petrohawk Energy Corp which was sold to BHP Billiton for around $US12.1 billion back in 2011.

We took that as a prompt to check what other well-known investors are predicting. Turns out that while a bit of caution seems to be a common theme as the Fed slowly winds down the easy money, many successful fund managers and investors aren't quite as bearish as Mr Grantham.

Warren Buffett, although concerned about the effects of the Fed tapering its $US85 billion ($92.8 billion) a month asset buying program, believed the economy is going to be ''just fine'' and equities were still the most attractive investment.

''People react too much to short-term things in the stock market whereas they behave quite rationally when they get into other investments,'' he said this month.

Billionaire Ray Dalio, whose Bridgewater Associates is the world's largest hedge fund with $US130 billion under management, wasn't as upbeat but said that the US was in its ''boring years'', hence 2014 would be forgettable.

Howard Marks, the chairman of US investment firm Oaktree Capital, said while equities were no longer cheap, there was no cause for panic. But he said investors should be cautious.

''The price of most assets as being on the high side of fair. We're not in the low of the crisis like five years ago. But similarly, I don't think we're in a bubble,'' Marks told Swiss newspaper Finanz und Wirtschaft.

''The economy, investor psychology and the price of credit investments had recovered, and pro risk behaviour had started to return to the markets. Because of that, our mantra at Oaktree Capital for the last few years has been: 'move forward, but with caution'.''

Private equity looks at mining far differently than a traditional publicly traded mining company. Public companies seek to give their shareholders the upside of the metal price while private equity seeks to lock in cash flows. Public miners are loathe to hedge, while PE firms see it as an opportunity to ensure cash flows.

While raising billions for the mining industry, now PE funds need to deploy their capital. Public mining companies need the cash, and with their own multiples for the value of their reserves having dropped so significantly, board arguments against selling to PE funds have diminished.

The union of willing sellers who need the cash and buyers who have lots of it to spend may culminate in a buying frenzy in the mining sector.

1:47pm: The famous Millionaires' Factory, Macquarie Group, has its mojo back – and chief executive Nicholas Moore is one of the biggest beneficiaries.

After announcing a surprise profit upgrade on Monday, analysis of the stock holdings of key executives, directors and shareholders shows that the value of Moore’s stake in Macquarie has climbed $36.4 million in the past 12 months to sit at about $81.2 million, based on yesterday’s close of $56.53.

The 81.1 per cent rise in Macquarie Group’s share price in the past year has also helped lift the value of the shareholdings of several other key executives.

Shemara Wikramanayake, the group head of Macquarie Funds Group who is seen as a possible successor to Mr Moore, has seen the value of her shareholding climb by $9 million to $20.1 million in the past 12 months.

Garry Farrell, group head of Macquarie’s corporate and asset finance division, has seen the value of his stock rise by $1.3 million to just under $3 million.

The Millionaires' Factory is cranking up production. Photo: Louie Douvis

1:20pm: Shopping mall giant Westfield Group has entered into $22 billion of financing facilities required for its restructure plan.

Westfield said the $22 billion of funding commitments include $14 billion worth of 2-year bridge facilities and $8 billion of 2-6 year bank facilities, with further details of the facilities to be released in late April.

The financing was meant to fund Westfield's plan to separate its global retail assets from its Australia and New Zealand businesses, which will be merged with Westfield Retail Trust (WRT) to form a new company Scentre Group.

1:14pm: Regional markets are higher today, after US consumer confidence climbed to a six-year high overnight, with the ASX200 leading the gains (after underperforming over the past sessions):

Japan (Nikkei): +0.4%

Hong Kong: +1%

Shanghai: flat

Taiwan: +0.6%

Korea: +1%

ASX2--: +1.05%

Singapore: +0.8%

New Zealand: +0.4%

‘‘Early signs are that US growth is back on track with consumer confidence holding up and the market growing more confident that some of the data through the winter was weather- related,’’ says Sean Fenton, a fund manager at Tribeca Investment Partners. ‘‘We have seen a stabilisation in China recently and there is a good chance we are through the worst.’’

12:54pm: In an extraordinary late night speech to parliament, Liberal Party Senator Alan Eggleston has accused the Commonwealth Bank of improperly defaulting various business customers of Bankwest - which CBA bought during the financial crisis - to claw back the acquisition price and prevent its funding costs from rising due to global banking rules.

Senator Eggleston said he was in possession of information provided by a victim of a CBA forced sale that may lead a court to "conclude that CBA had a predetermined outcome it needed to achieve, and it opportunistically capitalised on Bankwest's dire financial situation by manufacturing defaults on certain customers to engineer the result that it wanted".

Allegations of aggressive conduct by CBA and Bankwest during the financial crisis are long-running and the Senate investigated the claims in 2012. Several customers told the economics committee they had never missed interest repayments and CBA and Bankwest took possession of their businesses in 2009 without proper due process.

CBA and Bankwest have consistently and strenuously denied any misconduct.

While the Reserve Bank has generally quelled speculation that there is a housing bubble, it has used the report to reiterate the risks of “speculation” to both housing investors and lenders.

The bank said that stronger activity in the housing market particularly by investors can be a signal of “speculative demand which can exacerbate property price cycles and encourage unrealistic expectations of future housing price growth among property purchasers”.

“While rising housing prices and greater household borrowing are expected results from the monetary easing that has taken place and are helping to support residential building activity, they also have the ability to encourage speculative housing activity,” the bank said. “It is important for investors and owner occupiers to understand that a cyclical upswing in housing prices when interest rates are low cannot continue indefinitely and they should therefore account for this in their purchasing decisions,” the RBA said.

12:11pm: The cost of land for new homes has spiked in the past decade, up almost 150 per cent per square metre, while block sizes have shrunk.

At the same time, the Urban Development Institute of Australia has found the number of lots released to market has slumped in the past year – most notably in Melbourne, which in the past had enjoyed some of the healthiest levels of supply in the country.

Median block prices remained steady over the past year, and given sizes continued to shrink, the UDIA warned buyer value for money was worsening.

The average median price across the capitals was $504 per square metre. The biggest price shift was in Brisbane, up 13 per cent to $475 per square metre.

Sydney, which has the most expensive land in the country, recorded a median price fall of 12 per cent – the median price is now $247,000 for an average-sized block.

While some property commentators have criticised lot size shrinkage, the UDIA said consumers had an appetite for smaller sizes as they were more affordable and that market recovery would stall if local councils rejected small-lot housing.

The UDIA used these results to renew a call for an overhaul to government taxes and charges. They were presented in its annual state of the land report at the group’s national congress in Brisbane today.

Despite differing planning systems and a range of reforms under way across the states, planning processes have been widely criticised for restricting land release across the states.

UDIA national president Cameron Shephard said he was concerned housing had fallen off government agendas at all levels.

The UDIA called for more infrastructure investment to unlock land, for state governments to remove stamp duty on property and replace it with more efficient taxes such as a broader-based property tax.

11:58am: The Bureau of Resources and Energy Economics has trimmed its 2013/14 forecast for iron ore exports but still expects shipments to rise 20 per cent on the previous year as miners ramp up production, putting pressure on prices.

BREE analysts forecast an average price in 2015 of $103 a tonne, from $110 a tonne this year, still well above some of the more bearish market forecasts.

The bureau forecast iron ore exports would now reach only 631 million tonnes in the financial year to June 30, down from 650 million tonnes in its previous forecast in December.

However, it raised its forecast for metallurgical coal exports to 177 million tonnes in 2013/14 from its previous December forecast of 164 million.

The bureau did not provide any explanation for the downward revision in its outlook for iron ore exports, but the Australian iron ore belt has been hit by cyclone activity and heavy rains in recent months which can impede mining activities.

There are growing predictions among analysts the world will soon be awash in surplus iron ore as demand by China wanes.

In its latest commodities forecast paper, the bureau said Australia's iron ore exports in calendar 2014 should rise 19 per cent to a record 687 million tonnes.

Australian iron ore producers Rio Tinto, BHP Billiton and Fortescue Metals are increasing shipments to China, which are likely to top a half-billion tonnes this year, counting on greater economies of scale to provide a leg up over higher-cost producers in Australia and elsewhere.

Stock drops among Australia's big three producers suggests investors are growing concerned over exposure to the sector.

So far this year, Fortescue's shares are down 9 per cent, Rio Tinto's are down 7 per cent and BHP's 4 per cent against a mostly flat broader market.

11:47am: With no incentive to buy the shares until it sorts out its financing woes, Lynas shares continue to probe the downside, touching new five-year lows of 19c earlier today.

When releasing its interim results earlier this month, the rare earths producer said it needs to raise new equity, or new debt or at the very least restructure its debt repayment schedule as it grapples with ongoing difficulties in reaching intended production schedules.

11:27am: Myer boss Bernie Brookes says there have been no fresh merger discussions between his company and David Jones but he expects the investment bank advisors will begin talking in the coming week.

11:25am:Embattled Qantas chief executive Alan Joyce has been given some free advice from the outspoken head of Malaysia’s Air Asia: get on with the job and stop trying to do deals with government.

“I think the national carrier needs to re-evaluate its whole business,” Air Asia group chief executive Tony Fernandes told the Australian Financial Review, adding that Mr Joyce’s attempt to gain a government guarantee on its debt, as “dangerous” and that it was good Prime Minister Tony Abbott rejected it.

“I can sympathise with him, [Alan Joyce] he may think that Virgin [Australia] is getting assistance from Etihad … but at the end of the day it looks [like] a commercial transaction and I think governments should stay out.

“I think the problems with the airline industry are governments and I applaud Tony Abbott for making the statement that he has made.”

His comments come at a tumultuous time for the Australian airline, with Qantas shares down nearly 40 per cent over the past 12 months to around $1.03 amid investor concern about mounting debts, 5000 jobs being axed and a federal government trying to distance itself by refusing to back a standby debt facility.

Each month the magazine asks a group of economists for their predictions for GDP growth and other indicators across 14 economies. The average expectation for 2015 GDP growth in Australia comes in just below 3 per cent.

At the other end of the table, eurozone laggards Italy and Spain growth are expected to grow only slowly next year, after they recently exited a crippling post-GFC recession.

As Michael Pascoe notes, the Economist survey average is more pessimistic about Australia than RBA, Treasury and the local consensus for 2015.

10:39am:Investors don't seem to be too impressed about reports that Myer is planning to sweeten its $ billion "merger of equals".

Fairfax Media reported that the department store is looking at taking on debt, so it can offer cash as well as shares.

Myer shares are up just 1 cents in early morning trade, whiles David Jones has added 3 cents.

If a merger proceeded on current terms Myer would have to forfeit some of the benefits and Myer shareholders would emerge with a smaller stake in the combined group. This could be unacceptable to Myer shareholders and the Myer board.

10:38am:Pack your calculator! Finance and accountingprofessionals looking for a pay rise should head to New Zealand.

Not only have salaries increased faster in the past 12 months, but many roles are commanding higher base salaries, according to Robert Half’s annual salary survey.

“The Kiwi economy has picked up significantly compared with Australia. It’s recovered sooner and stronger,” said Robert Half Asia-Pacific managing director, David Jones. “The NZ dollar is at 0.95¢ to the Aussie dollar and there’s talk of it going beyond parity.”

New Zealand also suffers from a migration net loss which creates a ­talent squeeze and drives up salaries, he said.

A chief financial officer in Auckland is commanding the same salary as one in Sydney, and slightly higher than peers in Melbourne and Perth, based on jobs roles filled by Robert Half in the past 12 months.

The recruiter’s analysis shows that while salaries in finance and accounting remained static in Australian ­capital cities over the past year, they increased across the board in ­Auckland.

10:26am: The Australian Competition and Consumer Commission has announced that it will not oppose IAG’s proposed acquisition of Wesfarmers’ insurance underwriting business, the regulator said in a statement.

IAG’s proposed acquisition was publicly announced in December 2013.

“The ACCC found that, while the proposed acquisition would reduce the number of key underwriters from six to five for packaged farm insurance and crop insurance in Australia, the level of existing and potential competition in this market would be expected to constrain the merged firm,” ACCC Chairman Rod Sims said.

Wesfarmers shares are trading 0.1 per cent lower to $41.80 in a strongly gaining market, while IAG is 0.6 per cent higher at $5.47.

10:13am: Chinese company Yanzhou has given a strong indication this morning that it intends to continue supporting ASX-listed Yancoal despite cancelling plans for a full takeover earlier this week.

Yanzhou has today provided Yancoal with $US300 million worth of loans, with $US100 million of that on a six year term. The remaining $US200 million has been promised, but the term and interest rates are still undefined.

The money comes despite Yanzhou giving up this week on its eight month bid to take Yancoal private by purchasing the 22 per cent of Yancoal that it does not own. That bid was stymied by commodities trader Noble Group, which has a 13 per cent stake in Yancoal.

Yancoal said the loans announced today would fund working capital and capital expenditure. In reality, Yancoal is heavily reliant on continued funding from Yanzhou, having posted an $832 million loss during 2013.

10:09am:Seven has won legal proceedings against the Australian Federal Police, after a dramatic raid of the free-to-air television network.

The AFP raided the Sydney offices of Seven last month in relation to the Proceeds of Crime Act - which prevents people from profiting from a criminal offence - due to speculation the network had paid convicted drug smuggler Schapelle Corby for an interview.

No evidence of a deal with Corby – who spent nine years in an Indonesian jail – was found and Seven has since decided not to pursue an interview.

Seven was successful, this morning, in having search warrants used for the raids quashed. The AFP will pay Seven’s legal costs.

10:02am:New Zealand's Fonterra reported a 41 per cent fall in first-half earnings on Wednesday as the farmer-owned co-operative's margins were hit by higher costs, too much milk, and a lack of capacity to process higher-yielding products.

The world's largest dairy exporter, which controls about a third of global dairy exports, said normalised EBIT fell to $NZ403 million ($345 million) for the six months to Jan. 31, compared with NZ$693 million a year ago.

It said net profit after tax fell 53 per cent to $NZ217 million even as revenues climbed 21 per cent to $NZ11.3 billion, as the company has struggled to capitalise on record-high world dairy prices.

Dairy prices have been rising due to surging demand for milk powder from China and other emerging countries, where growing middle classes are developing a voracious appetite for infant formula and other products.

Fonterra should be flying high on the back of the "white gold" rush as it earns its best returns from milk powder, but higher prices have ramped up its input costs, while it has struggled to meet demand due a lack of factory capacity.

At the same time a bumper dairy season in New Zealand has resulted in all-time high volumes, which Fonterra is obliged to buy at historically high milk prices. What cannot be made into milk powder has been used for cheese products, which Fonterra said earned negative returns over the period.

9:57am: The gradual dropping of controls on China’s currency and current account represents a “seismic shift” in the world’s monetary policy and financial landscape, according to RBA deputy governor Philip Lowe.

Warning that the gradual internationalisation of the renminbi might not be without turmoil, Dr Lowe said he expected the freeing up of flows into and out of China to be “one of the really significant events in global capital markets”.

He said this could have significant implications for asset markets in countries that receive these inflows.

The remarks come amid heightened sensitivity within Australia to Chinese investment in property, particularly in Sydney and Melbourne, where recent price gains have been declared unsustainable by the Reserve Bank.

Dr Lowe said it was not possible to know how the likely gradual internationalisation of the RMB would play out.

“This is partly because there is no historical precedent for an economy of China’s size and relative stage of development integrating itself into a global financial system that is as complex and interconnected as we see today,” he told a conference of the Centre for International Finance and Regulation this morning.

He added that China’s task was more difficult than it has been for other countries, including Australia’s 1980s liberalisation, because of greater international scrutiny.

9:50am:Will the recent surge in the Australian dollar, which took it to a new 2014 high of US91.76¢ overnight, prompt some jawboning by the RBA governor when he speaks at a conference in Hong Kong today?

NAB head of global research Peter Jolly says Glenn Stevens is likely to maintain that he is comfortable with the Aussie's level when he speaks at Credit Suisse's Asian investment conference at 2.30pm (Sydney time).

Any policy related comments will likely repeat the recent sentiments expressed in the March policy meeting Minutes that the RBA is comfortably on hold for now.

Should Stevens pull out the jawbone to knock the Aussie down, expect the pair [AUD/USD] to cascade lower before finding renewed bids below the US91¢ level.

Conversely, should he leave the jawbone at home, something he has done of late, expect the Aussie to add to recent gains as traders take the view that the RBA no longer see the currency as 'uncomfortably high' in light of recent strong domestic data.

9:43am:Consumer confidence unexpectedly climbed in March to the highest level in six years, propelled by improved optimism about the economy’s prospects, signalling growth will strengthen after a weather-related slowdown.

The Conference Board’s sentiment index rose to 82.3, the highest since January 2008 and exceeding all forecasts in a Bloomberg survey of economists, from 78.3 in February.

Other figures showed the housing market was having trouble gaining traction as fewer people bought new US homes in February. Sales fell to their slowest pace in five months, a sign that the housing market has yet to recover fully from brutal winter weather.

“Signs of spring might be evident and might be getting people a little more optimistic that the future is going to be better,” said Joe LaVorgna, chief US economist at Deutsche Bank in New York.

“As these weather effects dissipate and we get payback, you’ll see confidence improve even more.”

Sales of new homes declined 3.3 per cent last month to a seasonally adjusted annual rate of 440,000, the Commerce Department said.

Freezing temperatures and snowstorms have caused a slip in housing activity this past winter while higher mortgage rates and higher prices had acted to slow growth earlier in 2013.

Meanwhile, the Standard & Poor's/Case-Shiller 20-city home price index reported that prices rose a healthy 13.2 per cent in January compared with 12 months earlier. That's down slightly from a 13.4 per cent increase in 2013.

9:22am: More qualifiers for Janet Yellen's market-shaking ''six months'' comment last week: The US Federal Reserve will probably wait to hike interest rates until more than six months after it ends its bond-buying stimulus program, a top Fed official says.

"(I) think that it's going to be longer than that," Dennis Lockhart, president of the Federal Reserve Bank of Atlanta, told an investment conference.

The Fed has made clear it will continue to support the economy, and last week said it would keep its benchmark rate near zero for a considerable time after it ended the bond purchases.

Lockhart was commenting on a statement by Fed Chair Janet Yellen last week that a considerable time meant around six months.

"That is a really a minimum, not a maximum," Lockhart said, while qualifying his remarks as representing only his personal view.

Yellen, in a press conference following the first Fed policy meeting that she chaired, said the Fed will probably end its bond-buying program - known as QE3 because it is the Fed's third round of bond buying - next fall. Some investors took Yellen's comments to mean the Fed could raise rates as soon as April.

Lockhart, who does not have a vote this year on the Fed's policy-setting panel but participates in its discussions, is considered to be near the centre of the central bank's policy spectrum, and his comments often reflect the views of the core decision-makers.

Quotes Search

The news of a possible Chinese stimulus must have been known by some in the market very early on as the big miners surged at the open.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:54PM

Actually I don't have a problem with Medibank Private being sold. There's no reason for the company to stay under public control. It's a gov't enterprise providing the same service as competitors in the private sector. I'm just wary of investing in a float that will be on the terms I suspect will apply based on past privatisations.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:52PM

If anyone can convince the public to buy another bloated IPO, it's Arnie.... "Come with me if you want to invest!"

Commenter

GS

Location

Date and time

March 26, 2014, 4:22PM

So let me get this straight.

We are going to sell an asset yielding 7.9% ($315m/$4b) to pay down debt with an interest rate of around 3.5%

How is this a prudent move?

Commenter

Steve

Location

Date and time

March 26, 2014, 4:16PM

It sounds like Hockeynomics, but they want all of the cash in one go as a capital input rather than over a period of time as would be the case with a dividend stream.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:43PM

Last time I looked the book value of Medibank Private is only $1.4b so there is going to be a juicy premium involved but only for the gov't.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:44PM

Would any of you be tempted to buy into Medibank?

Commenter

Fred

Location

Date and time

March 26, 2014, 4:16PM

Privatisations are great...

Why don't we privatise the whole Gov't?

I'll buy some shares...plenty of opportunities.Lord, I love this country...like a town with no dogs...chaos galore.

Commenter

Investor

Location

Sydney

Date and time

March 26, 2014, 4:12PM

So I wonder how much debt Medibank Private will be loaded up with by having to borrow to pay the gov't a special pre-sale dividend so that the gov't gets the dividend and the sale price. Buyer Beware. The post sale results could be markedly different to the pre-sale results.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:01PM

Mitch: what do you mean? If they get a bridge facility to pay the govt before the float it would be repaid after float with incoming cash flow so what will be the issue? It isn't like they are going to load Medibank with a 4bn facility to pay the govt with and then not pay any down post float.

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 4:20PM

@Draftreader, wouldn't you expect a dividend from the company. Most of its future cash flow will go towards paying down debt and interest and reducing distributable income. Telstra was loaded up with several $billion of debt pre-sale to pay the gov't a special dividend. That's where John Howard's surpluses came from and why govt's love privatisations.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:36PM

95c for AUS/USD before any serious action is taken from what i can see

Commenter

Swaggers

Location

Sydney

Date and time

March 26, 2014, 3:59PM

"Premiums will not rise as a result of the sale of Medibank Private". That's because as anyone with private health insurance knows premiums skyrocketed this year to dress up the company for sale.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 3:48PM

The present members of Medibank Private will get nothing even though they have contributed to the reserves of the fund. I expect a bunfight over that. Plenty of legal people will be policy holders.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 3:46PM

Just being announced on ch24 by Matthias Cormann that the gov't is going to sell Medibank Private. Now while Medibank Private is not yet listed, its competitors (NHF) and related companies are and this announcement is being made while the market is open. Just like Joe Hockey telling a roomfull of finance people about the govt's ideas on QAN while the market was trading and causing an immediate spike in QAN shares in an unevenly informed market.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 3:43PM

8 and half years more of this to put up with...oh deary me!

Commenter

Aussie Al

Location

Adelaide

Date and time

March 26, 2014, 4:12PM

Yes, the economy is being run by economic amateurs who don't know that you don't make market-sensitive announcements about a company while that company's stock is trading. If they had waited another 30 minutes or so the market would have been closed. In this case the company involved is not trading but there are a whole range of companies in the same industry that are.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:41PM

No just 30 months from this one-term-wonder. Give the Tory Rabbitt a knighthood and he would be gone tomorrow.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 4:46PM

"There are some people who think that Australia is in a (housing) bubble, you can never be 100% sure .. but the price to income ratio has been around four times ... for about 10 years"

EDs.. Am I reading this right? Has Sir Glen of RBA just stated that Median house price in Aus is 4 times Median income?

Say it loud and often enough and it becomes dogma whether it is true or not.

Commenter

Elric

Location

Melnibone

Date and time

March 26, 2014, 4:09PM

Is it any scarier if Capt Glenn got to Craig James?

Commenter

Opinion Only

Location

Melbourne

Date and time

March 26, 2014, 4:10PM

ED: send your calcs to the RBA and let them mull over whether yours has more merit than CJs.

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 4:22PM

Perhaps a stupid question

the US and now the China stimulus -

Is this just how money is created ?? or is purely debt??

Commenter

John

Location

Mt waverley

Date and time

March 26, 2014, 3:34PM

Glenn Stevens - Dollar too high lol.

thank you for your excellent and articulated insightfulness. Sure those 3 words are really helpful for everyone haha

Commenter

Matt

Location

Date and time

March 26, 2014, 3:32PM

Chinese stimulus is music to our ears, going to need heaps of iron ore for those railway projects. If you are short BHP and FMG, would be a good idea to get out while you can.

Oh and which blog guru was saying Roy Hill will end in tears, don't think so!

Commenter

Half Back Flanker

Location

Prahran

Date and time

March 26, 2014, 3:22PM

I think i am able to pick good companies and when to buy. They almost always go up at some point have great unrealised profits. But I have a lousy sense of when to sell. When I sell for profit it keeps flying. When I hold too long there is an earnings surprise and i am now holding a turn around hope. Needs work...

A fascinating game to play

Commenter

Elric

Location

Melnibone

Date and time

March 26, 2014, 3:18PM

2.57 - "foreign observers, especially in Asia, many of whom say to me ‘Australia is doing very well’"

Ah, but those foreigners don't have to raise a family with one wage-earner in a Sydney of rising rents and general cost of living nightmares.

Commenter

Dr No

Location

Sydney

Date and time

March 26, 2014, 3:15PM

@ 3:02pm "that pick-up would help offset a slowdown in mining investment which was starting to cool after several years of booming growth.... "

Interesting use of the word "was" . Mining boom back on in the eyes of the Ed's?

EDs: Good spot! Should definitely be "is". Chrs

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 3:09PM

The Eds at 2.20pm described Jeremy Grantham's comments quoted yesterday as "gloomy" for stocks. They also said the comments sparked some "controversy".

I must have read the wrong article, because I thought Grantham said he wasn't expecting a correction tomorrow but rather he thought the market might run forward maybe another 25% and then have a correction.

If so, what is "controversial" or "gloomy" about that? He is simply saying that markets run strongly and occasionally work out they've run too far too fast and correct. The cycle has been repeating throughout history. The markets ran hard in the 1980s and then corrected. They ran hard in the 90s and then corrected in the "tech wreck". They ran hard in the 2000s and then corrected via the GFC.

Notwithstanding the cycle, markets have risen inexorably when measured over long periods.

I'll make a prediction now that over the next forty years we will have another two or even three GFC or Black Tuesday style "crashes", but that forty years from now blue chips will still be worth many multiples of their prices today.

Gloomy? No. Controversial? No.

Commenter

pass the red

Location

Date and time

March 26, 2014, 2:45PM

Selling the AUD here at .918It's getting way too proud

Commenter

Ridgy

Location

Date and time

March 26, 2014, 2:41PM

It's official, shareholders in FGE have done their dough. http://www.asx.com.au/asxpdf/20140326/pdf/42nmk5sl4h62dq.pdfIf a class action is launched against the directors for failure to disclose, as I heard was being planned, you may have some hope of a small recovery.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 2:35PM

Melbourne CBD to get free public transport. Outer suburbs to only pay for zone 1 instead 1+2.

Great news for melb. But how do they afford this? Least it will get everyone off the roads?

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 4:07PM

They said it will cost $100M a year. They'll find some other sneaky way to make up for it. They think tourism should get boosted.

I can already see the Melbourne City apartment real estate ads including this... "say goodbye to car & transport costs...be free!" hehe

Commenter

GS

Location

Date and time

March 26, 2014, 4:18PM

Macquarie Bank...Millionaires Factory...what does that mean.?

Is it:1. The Bank is a factory making millionaires; what are they producing?2. The Bank is using low paid factories in Asia region to enrich themselves3. The Bank is saturated with cash from the QE?4. The Bank is on a major marketing campaign to attract investors that ran for the door a few years ago?

Commenter

Who wants to be a Millionaire Quiz

Location

Sydney

Date and time

March 26, 2014, 2:26PM

@Who wants to be a Millionaire Quiz

They call in the millionaires club cause of how highly paid the employes are it's had the nickname for a long time

Commenter

JW

Location

Date and time

March 26, 2014, 3:22PM

I'm looking at a share with a sell price around $1 that has a quantity of about 30,000 shares available at that price and the number of sellers is 30. That's 30 people selling a share parcel worth an average of $1,000 each. Is that suspicious or do people really trade in such tiny parcels?

Commenter

Gareth

Location

Sydney

Date and time

March 26, 2014, 2:18PM

Shares being traded 1 at a time is common, ridiculous and by bots, but common.

Looking at the price action in MRM today , it looks like the retail bookbuild will clear at 2.30 , finally the overhang will be sorted out and hopefully this stock can start working its way to a more normal level... I will be looking to add if we trade below where the retail book clears

Commenter

Chris

Location

Sydney

Date and time

March 26, 2014, 2:17PM

Nicholas Moore's not doing too badly out of Macquarie!

And the Libs bang on about "union greed"

Commenter

Fred

Location

Date and time

March 26, 2014, 2:04PM

Keep up. There are two sets of rules: Master (Moore); Serf (union types). Soon to be Sir Nick

Commenter

Elric

Location

Melnibone

Date and time

March 26, 2014, 3:01PM

I wonder how much tax, if any, he'll pay on that.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 3:18PM

RBA Jawboning housing and not "high dollar"? I need to check if I am in the right country, is this Australia land of endless 10% pa house prices rises?

Commenter

DJ77

Location

Sydney

Date and time

March 26, 2014, 2:01PM

short the banks..he he

Commenter

Charlie A.

Location

Date and time

March 26, 2014, 1:58PM

When the going gets tough what is a simple politician to do. Hint. Reset the clock backwards. Tony's surprise move to reinstate knighthoods reveals a simple mind but also is a warning to all progressives. Women in particular should now be ready as Abbott runs out of smokescreens he will be looking for soft targets.

Commenter

Wally

Location

Flynn

Date and time

March 26, 2014, 1:40PM

keep on topic.

Commenter

Moderator.

Location

Date and time

March 26, 2014, 1:55PM

I think most Australians are of the opinion that Tony is taking this country forward, not backwards. I think you misunderstood what he meant when he said he will take the budget back to surplus ...

Commenter

Dr No

Location

Sydney

Date and time

March 26, 2014, 2:19PM

Yes very relevant to Markets Live

Commenter

Chumlee

Location

Date and time

March 26, 2014, 2:22PM

@Moderator...."We recognise that business, economics and markets are affected by a wide range of things."....It's all intertwined and I among others I'm sure want to hear the views of the very bright people/traders/investors on this blog. Why wouldn't you?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 2:38PM

@Dr No...Open for business means fire sale of assets to keep our utterly unsustainable economic model going (for now). Why would we be "open for business" otherwise?.....Abbott is accelerating the disastrous policies of the past 30 years. It's not going to end well.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 2:54PM

lol the RBA is sounding warning bells.

I think there have been warning bells towards the end of 2013 :p.

Hazard sounds more like it

Commenter

Matt

Location

Date and time

March 26, 2014, 1:33PM

The warning signs have been around since the GFC obviously and there's now more DEBT than the start of the GFC. Many properties sold for up to 60% lower than the previous sales prices on the Gold Coast. That's not accounting for stamp duty, legal fees, rates, interest on debt, inflation, opportunity cost of that money etc. That's 60% off the previous sale price from several years previous before accounting for all the other above mentioned losses as well.

Commenter

Gold Coast

Location

60% off sales

Date and time

March 26, 2014, 2:08PM

was somebodyy short on QAN?

Commenter

mum and dad

Location

investor

Date and time

March 26, 2014, 1:27PM

Currently at "gift" prices.

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 2:10PM

"...The cost of land for new homes has spiked in the past decade, up almost 150 per cent per square metre, while block sizes have shrunk."

If only Australia had a bit more land...such a tiny place, such expensive prices. Apparently the Chinese will somehow find new ways to make more, better use of such limited space....*200 million Chinese in Australia...NOW!

Follow the above and you'll have security, happiness, wealth. Do not follow it...ruin.

Commenter

Advisor

Location

Sydney

Date and time

March 26, 2014, 1:13PM

Purchase property in Greece or Italy for basement bargain prices lol . you can live like a king over there

Commenter

Matt

Location

Date and time

March 26, 2014, 2:04PM

not in montalcino where I am looking.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 2:45PM

your looking at the wrong spots in australia. there are bargains galore if you know where to look and know all the rules. bargains.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 2:50PM

@Matt...Better to live in Greece or Italy than in China's province...pardon me...Australia.

Commenter

Advisor

Location

Sydney

Date and time

March 26, 2014, 3:24PM

Bears losing the fight. Another day to the Bulls. up 55% since this day in March 2009. SBM down 88% since this day in March 2009. There you have it folks stand by for whitty remark from angry panda bears.

Commenter

the

Location

judge

Date and time

March 26, 2014, 1:04PM

Sell now people. May is approaching.

Commenter

Ridgy

Location

Date and time

March 26, 2014, 12:58PM

Buy now people Dividends are approaching. Thanks goodness I’m not a fan of shorting. Can’t wait for May to top up.

Commenter

Dividends make me happy

Location

Date and time

March 26, 2014, 1:44PM

@mitch....I can't see the LNP's boss's (big business) letting them cut anything too much. Cut spending and it stalls Australia's wealth transfer to business. It's not going to happen, until of course there's no wealth left.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 12:54PM

yes very relevent to markets live..

Commenter

Bewildered

Location

Date and time

March 26, 2014, 1:09PM

Business welfare won't be cut but transfer payments to families are for the chop as well as increases in a whole range of taxes and charges that become necessary due to cuts to payments made to the States. In the end less spending power for consumers means less revenue in the door for business and from that flows lower profits and lower share prices.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 1:18PM

@Bewildered...Seriously? You don't think this would impact share prices?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 2:00PM

12:47 pm

All we get is warnings, never action.

How about macro prudential and financing to be based on single income based on higher average rates to stop this cheap speculation.

Need to remove people in influential positions who think the answer to everything is more debt.

Commenter

Opinion Only

Location

Melbourne

Date and time

March 26, 2014, 12:54PM

Describe if you can what the whole structure of the economy is all about. I think you will find that the fractional reserve banking system only works on the basis of debt and repayment.. increasing the money supply with debt in other words.. is what it is .. the days of holding gold or other store of value are long gone

Commenter

Lean too

Location

Date and time

March 26, 2014, 2:13PM

I support debt used for productive purposes.

We have had 5 years of a continuing GFC with a supposed recovery based on market distortions to bail you out of your speculative ventures by the next ponzi victim.

Clean out the excesses and speculators can take their medicine.

Commenter

Opinion Only

Location

Melbourne

Date and time

March 26, 2014, 2:39PM

"You would think a $1 million plus price tag, would guarantee something with a touch of luxury. Or at the very least a house with an inside toilet. But in some of our most in demand suburbs, you are lucky to get something even livable for that much.

It’s all about location, location, location for these million dollar dumps. Buyers are prepared to fork out big cash to secure something in the right spot, even if it means they have to spend a lot more to make it livable or knock it down and rebuild."

Commenter

There's just

Location

so much DEBT out there...

Date and time

March 26, 2014, 12:52PM

define right spot?with tele commuting the right spot could literally be anywhere there is a good signal.I was in the right spot when I lived in the inner city but having my car broken into weekly. the property graffitied daily and people by passing pretty good security to climb in an open window 3 storeys up ( yes a house ) whilst I was sleeping made it not the right spot. that - toxic pollution on a grand scale oozing underground from Botany at 10m a day - non stop plane noise and pollution and a new born was enough to make me head for the hills. I dont even lock my car now.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 1:14PM

@smilingjack agreed. Starting my first business and working from home in 2008 was the best decision I have ever made. There's no need to commute to an office daily if you are not in a customer focused role. Sitting in comfort across the road from the Pacific ocean suits me fine.

It's a couple of hundred dollars to fly to Sydney or Melbourne whenever I feel like it and only a few hundred more to stay in nice CBD hotels with free wifi. I'll leave the rat race and mega mug mortgages to others.

Commenter

Gordon Akman

Location

Broadbeach

Date and time

March 26, 2014, 2:16PM

wow BOQ @ $13.

Commenter

newbie

Location

who went short?

Date and time

March 26, 2014, 12:50PM

Wow BBG 52c. Who went long?

Commenter

Sir Prancealot

Location

My castle

Date and time

March 26, 2014, 1:08PM

Can anyone tell me what is happening to Karoon gas, is it short selling? is there something they are not releasing to the market?

Commenter

whatshappening

Location

Melbourne

Date and time

March 26, 2014, 12:47PM

Yes im wondering whats going on with this stock too! 0.26% of sales are short so I don't think shorting is the issue.

Commenter

gforce

Location

syd

Date and time

March 26, 2014, 1:28PM

Thoughts on TRS?Bought in @$9 but it has broken support today

Commenter

Stoja

Location

Date and time

March 26, 2014, 12:45PM

Yaay..!! Look at Vmoto (VMT) go.. Up 14% since last week.

Looking at the stage it is currently at, I think/hope it will take off this year.

Commenter

JimmyM

Location

Scooooooterville

Date and time

March 26, 2014, 12:29PM

Another number he's bemoaning is that the billion plus Indians are turning out to be Indians!

Commenter

India is not China - Surprise!

Location

Date and time

March 26, 2014, 12:08PM

Another number he's bemoaning is that the billion plus Indians are turning out to be Indians!

Commenter

India is not China - Surprise!

Location

Date and time

March 26, 2014, 12:08PM

Is LYC going to go bust or does anyone think it is a nice spec buy at .18?

Thoughts?

Commenter

Ridgy

Location

Date and time

March 26, 2014, 12:08PM

Wouldn't touch it. 0.18 could be better invested on some of the smaller caps with actual prospects.

Commenter

confused

Location

syd

Date and time

March 26, 2014, 12:47PM

Too much debt and making a serious loss. Oblivion is a possibility. SP could bounce but <10c is always a possibility.

Commenter

Yin or yang

Location

Date and time

March 26, 2014, 12:58PM

Thanks for your thoughts. I am not going to touch it.

Cheers

Commenter

Ridgy

Location

Date and time

March 26, 2014, 1:05PM

is it a case of the bigger companies simply driving prices down to wipe out the smaller ones then buying them up for a snap?rare earths are by definition - rare.a lot would depend on TA and Jay Weatherill deciding on Olympic Dam. The rare earths are mostly in SA.Ive noticed a lot of activity lately in SA with oil and gas in the coopers basin. I think the writing is on the wall and Jay will have to jump into bed with TA and SA will become a mining / gas / oil hub very soon.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 1:07PM

smilingjack i think you need to read up on "rare" earth elements a little bit they are not that rare, mostly in SA have a look at a little place called China.

Commenter

craig

Location

Date and time

March 26, 2014, 3:06PM

LYC - Poor old Lynas is a shorters delight. Increasing costs and steady/smaller profits. In my opinion the management should focus on ramping up their profits before making any more expansion of plant and equipment. Investors want to see profits and potential dividends and not the best plant in the world.

Commenter

It's All About Making Money

Location

Lennox Hd

Date and time

March 26, 2014, 11:59AM

Allan - so true, sadly. The Lucky Country's poor govts have been pushing immigration and 'a big Australia' - so we now share the wealth.

Meantime our (sic) resource giants are now owned by offshore foreigners. And their tax lawyers have been very busy.

Our agriculture sector is now going in the same direction.

We will become a medium standard of living Asian country by the end of the century. And that is the best case outlook ! We should have kept the riches and ownership to ourselves. I have spent over 25 years living in Asia (and Africa) and I can assure you that our generosity (stupidity?) would not have been mirrored by those regions.

Commenter

Tony L

Location

Melbourne

Date and time

March 26, 2014, 11:58AM

Allan - so true, sadly. The Lucky Country's poor govts have been pushing immigration and 'a big Australia' - so we now share the wealth.

Meantime our (sic) resource giants are now owned by offshore foreigners. And their tax lawyers have been very busy.

Our agriculture sector is now going in the same direction.

We will become a medium standard of living Asian country by the end of the century. And that is the best case outlook ! We should have kept the riches and ownership to ourselves. I have spent over 25 years living in Asia (and Africa) and I can assure you that our generosity (stupidity?) would not have been mirrored by those regions.

Commenter

Tony L

Location

Melbourne

Date and time

March 26, 2014, 11:58AM

The ASX200 seems to be holding 5300 in difficult circumstances. The longer it holds the more likely we will break through the resistance at 5460 and head on up towards 5650.

Should this scenario play out then the remainder of 2014 is looking good and we will get 6000 in 2015

Commenter

Mister5100

Location

Date and time

March 26, 2014, 11:48AM

Yep we've been holding steady around these levels since 2006. I'm tired though. Are we going to start making some progress soon?

Commenter

Stair Climber

Location

Pass me a gatorade? I'm tired...

Date and time

March 26, 2014, 12:02PM

Recently the ASX ran into Yellen and Crimea. All it will take is a week of positive news and off we go. But history shows us that there is always negative news hiding behind every corner. My reading is that if China and Putin remain calm then 5500 can be reached within a week.

Commenter

Wally

Location

Flynn

Date and time

March 26, 2014, 12:05PM

Your crystal ball is broken.

Commenter

Allan

Location

Prahran

Date and time

March 26, 2014, 12:21PM

The chart for the AllOrds for 13/14 has faithfully followed the charts of the last 4 years, rising fairly steadily from July to the present with of course some peaks & troughs in between. 13/14 has been running on average between 500-600 points above the averages of the last 4 years. From about mid-April the charts for each of the last 4 years take a dive and stay down until mid-July.when the steady rise referred to earlier starts all over again. I put the falls down to that quiet period after shares go ex-div in March and the "sell in May & go away" effect. As the April slump has happened for each of the last 4 years I see no reason not to expect it to happen this year as well. So maintaining the average 500 points above previous years a 30th June figure for the AllOrds is a little north of 5,000. This year a key player will be the Budget in early May that I expect will make a significant dent in gov't spending and hence consumer spending and impact unfavourably on share prices. Then of course there's China, Ukraine, iron-ore prices.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 12:50PM

At the moment The West backed oligarchs are in control of the Ukraine and the Russian backed oligarchs are on the outer and Crimea is back with mother Russia (where she should always have been) and there's a lot of international huffing and puffing and some tit for tat between the two sides. The question that matters to us in this blog is - will Russia invade? I don't think so, and only if civil war breaks out within Ukraine itself.

Commenter

Catch 22

Location

Date and time

March 26, 2014, 4:42PM

@Demographer......Exactly. Individuals are going backwards, Australia going forward for the benefit of big business with declining lifestyles but more people to keep the ridiculous destructive "growth" model churning. Thanks Greens. How's our carbon foot print going with more and more and more people?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 11:48AM

........."Australia is still topping the table of The Economist’s developed nations growth forecast poll.".....

Borrow, populate, sell and consume the proceeds would be a better and more descriptive term than "growth". Growth implies what we're doing is a good thing.

How would we look WITHOUT further government and highest in the world personal debt, selling $billions of Australian assets AND the capex cliff? Yep rejoice, we can carry on doing this uhm, uhm, we can't carry on doing this.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 11:16AM

Re Michael Pascoe's 'The Economist' chart from 11.07am.

Is it any surprise that Australia and the US top the table? All the other nations have very low or declining population growth.

Adjust the chart to per capita basis and it'll be a very different story.

Commenter

Demographer

Location

Pick and choose the data to suit

Date and time

March 26, 2014, 11:15AM

@Demographer......Exactly. Individuals are going backwards, Australia going forward for the benefit of big business with declining lifestyles but more people to keep the ridiculous destructive "growth" model churning. Thanks Greens. How's our carbon foot print going with more and more and more people?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 11:48AM

Michael Pascoe demonstrates the folly of falling in love with a number.

What's the point of GDP growth that is undermined by two major factors 1) 80% of resource profits going off-shore and 2) dilution from population increase.

Maybe he should have a chat to Ross Gittins at the water cooler.

Commenter

Allan

Location

Prahran

Date and time

March 26, 2014, 11:15AM

......."Oh yeah, Oz has been so ruined".....

Cash "all in" to the share market when Pascoe eventually and inevitably turns bearish.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 11:11AM

Remember in 2007, at the market's top, when BHP wanted to buy RIO for $150?

...Myer & DJs in 2014 ;)

Commenter

GS

Location

Date and time

March 26, 2014, 11:11AM

LOL bulls are dreamers. We were here four months ago.

Oh and 6 years ago. And 8 years ago.

The market only needs to go up:

((6873 * 1.18 * 1.2)-5378)/5378

= 80%

and it's a new bull market!

Hurrah!

Commenter

Allan

Location

Prahran

Date and time

March 26, 2014, 11:08AM

Factor in the high level of dividends paid to long holders of shares and the story is very different.

Commenter

Chumlee

Location

Date and time

March 26, 2014, 11:34AM

The market was 500 in 1979.

It was 1400 in 1992.

It is ~5400 today.

The biggest problem I have at this time of year is RSI from opening multiple dividend statements every day.

There is no excuse for not creating wealth in this country and at this time in history. It just require consistency, prioritising saving over short term consumption, and above all taking a multi-decade view.

Commenter

pass the red

Location

Date and time

March 26, 2014, 12:05PM

Sure it is, With dividends zero return in 7 years.

Commenter

Allan

Location

Prahran

Date and time

March 26, 2014, 12:24PM

This is the lament of someone who has not participated in the run from the low 3000s in 2009 until now, I bet.

Also, with (franked) divs, the story is materially different.

R.

Commenter

Roadsta

Location

Spaceship Earth

Date and time

March 26, 2014, 12:46PM

I agree @ pass the red. if you spec buy rubbish like SBM then you have to take ownership, so much other good stock around. no excuses.

Commenter

screen

Location

watcher

Date and time

March 26, 2014, 12:50PM

While the mainstream western 'media' (propaganda) outlets continue to preach about big bad Russia, the West is quietly doing to Ukraine what it did to Libya and Syria (not to mention Iraq and Afghanistan.

Bringing 'democracy', which translates as years and years of turmoil and instability.

The neo nazi 'Right Sector' proved a useful pawn to overthrow the government, they provided the most hardened fighters in the battle for Kiev. Now that Washington, Brussels and the IMF have their puppet government installed in Kiev, they can clean their hands of those who did the dirty work. In a story that was barely mentioned in any western media, one of the leaders of the Right Sector was shot dead by the unelected Ukrainian government yesterday.

The turmoil in Ukraine will get much worse before it gets better...

Commenter

Fred

Location

Date and time

March 26, 2014, 10:50AM

Agreed - Washington and some European countries have been meddling in eastern Europe for years now by actively supporting "colour revolutions". I really hope that their coup d'etat in Kiev will backfire when Sloboda and the Right Sector realise that they've been used and abused by despicable people in Washington and Brussels. Because the Right Sector will strike back hard and the puppet installed in Kiev by Washington will be in deep trouble.

Commenter

Dr No

Location

Sydney

Date and time

March 26, 2014, 11:09AM

Check this out. Not sure why this was not reported in western media.

http://rt.com/news/tymoshenko-calls-destroy-russia-917/

Very strong language, not sure if it is mere propaganda. There could be a bloody civil war !!

Commenter

Ronn

Location

Sydney

Date and time

March 26, 2014, 11:16AM

or western democracy. when it doesnt turn out the way you want - back the military to overthrow the democratically elected government then say and do nothing whilst the rightful government is put up against the wall. morsi and 600 others in court today after 529 of his supporters got the death penalty a few days back. anything in the western press. nothing. now to finish off al jazzeera and stop the pesky truth getting out. a sniper here a sniper there. jail here without trial.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 11:17AM

What an absolute load of Putin inspired codswallop. Clearly, you are setting scene for further incursions by Putin into eastern Ukraine.

Commenter

Whyalla Wipeout

Location

Date and time

March 26, 2014, 11:24AM

Be careful who you accuse here. There were reports that many of the sniper deaths in the last days of the uprisings were on both sides, demonstrators and police alike, and the suspicion is that the Russians were shooting people as a deliberate tactic to give them an excuse to intervene. Russian interference in the affairs of what is left of Ukraine will continue.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 11:30AM

whyallahe could ignore international law ( which he hasnt ) and simply annex chunks of all the countries around him and then call it say - not occupied territories - lets say - disputed territories. that works fine. anything from the western press. yep - they fully support it.or he could pull the old wmd rabbit out of the hat - that one works a treat. are you familiar with rendition guantanamo abu ghraib iraq afghanistan vietnem iran cambodia egypt syria libya cuba etc etc etc. ringing any bells?I hear those russians are placing troops on their own borders!!! how dare they!

Commenter

smilingjack

Location

Date and time

March 26, 2014, 11:38AM

could we have a list of predicted gdp figures from one year ago compared to actual for a good laugh? wasnt the USA just revised down - again?I like looking at state and fed predicted budget figures which are always 100% wrong followed by " we know we predicted a surplus but.....give us one more term and we will turn it around"easy to google ( state budget and year )then go forward a year.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 11:41AM

Whyalla Whipeout, the world isn't divided into good guys and bad guys. Putin is not Satan and Obama is not a Saint.

America is happy to disregard anybody's sovereignty when it suits them, it's happy to fund Islamic extremist terrorists in Syria and Libya.

But if Russia responds to an elected government being overthrown and replaced by a non-elected pro-Western one by, quite reasonably I think, supporting a referendum in a territory that opposed the new Ukrainian government, that was part of Russia until given away on a whim by the Ukrainian Soviet leader Kruschev, and where the majority is still Russian, he is painted as the new Stalin!

Why is a referendum in East Timor great (I think it was) but a referendum in Crimea not?

Commenter

Fred

Location

Date and time

March 26, 2014, 11:45AM

Fred - How much is Vladimir paying you to spout his line on SMH blogs? The Yanukovich government betrayed large sections of the population who were sick of the corruption of government and courts, the police, who after promising to sign the Association Agreements with the EU back-peddled and jumped into bed with Putin and his cronies. Ukrainian protests have been incredibly peacable, eschewing violence even in the face of political corruption and vote-rigging. It wasn't until Yanukovich had jumped into bed with Putin and adopted his hard line repression and intimidation tactics of anybody who opposed him by turning Berkut units against the protestors that that violence started. When he did that he lost control - his political supporters, military and large sections of society refused to support him. The overwhelmingly peaceable nature of the protesters was really brought home when they moved into his palace, strolled about with their familiy taking photos, marveling at what they saw. They didn't start mass looting or engage in rampant destruction, didn't form lynch mobs. So there are some violent radicals...a tiny fraction of a peaceable movement sick of their ruling elites and who want a government without the corruption of the past and a fair justice system, something inimical to Putin's regime, who, by the by, are shipping people into the east of the country to stir up violence and destabilise the country. Western powers are no saints, but Putin is no angel.

Commenter

Dave

Location

Brisvegas

Date and time

March 26, 2014, 11:47AM

@ smilingjack - there was plenty in the western press - maybe not in Australia, can't say, don't read much Australian media, but that says more about Australian and Murdoch media than anything else. Got a big section on the main page of the NYTimes.

Commenter

Dave

Location

Brisvegas

Date and time

March 26, 2014, 11:53AM

It also tells us the US does not honor its treaties. The US was meant to come to Ukraine's aid if it was invaded. The US didn't. So i'm inclined to believe that if Australia was invaded by China the US also would not come to our aid.

Commenter

Ryan

Location

Date and time

March 26, 2014, 12:02PM

Dave - both Russia and the US (and to a lesser extent (UK, Germany, the EU) are meddling in the Ukraine as part of their geopolitical game. Fred is just trying to balance out the blatantly pro-West propaganda we're constantly fed in Western media. But only Sloboda and the Right Sector stand up for Ukrainian interests, as Obama and Puting will find out to their disadvantage. Also, very positively, lots of European nationalists have volunteered in Sloboda and Right Sector paramilitary forces. They will get battle-hardened and later carry the revolution back with them to Western Europe.

Commenter

Dr No

Location

Sydney

Date and time

March 26, 2014, 12:02PM

Stevens has to go, his job is to act not jawbone, the only way to get the $AUD lower is to lower rates, he has been sitting on the sideline for way too long meanwhile no one is going to employ or spend. When things pick up then raise rates again. doing nothing when every other country are on the bottom makes us far too attractive.

Commenter

Damian

Location

NSW

Date and time

March 26, 2014, 10:47AM

+1,,,his record is woeful,he raised rates too high back in 07,then raised them too quickly after the emergency level and kept them too high for too long,and they are still too high.

Commenter

Chumlee

Location

Date and time

March 26, 2014, 11:01AM

@Damian...Stevens doesn't have options and neither does any other in his place. This is the start of the end of Australia's prosperity where there are no solutions or options.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 11:05AM

Jeez......some people really do what the re market to implode.

Stevens is stuck, rock and very hard place.

Commenter

Oracle

Location

Oberon

Date and time

March 26, 2014, 1:44PM

FMG plunging err...sorry jumping above $5.00...I like it!

Commenter

Trader29

Location

Date and time

March 26, 2014, 10:40AM

Mermaid Marine (MRM) shares that the retail plebs didn't take up on Fri will be on offer today. Finally they'll get their chunk and price should move up from here.

p.s I'm surprised 7 million shares at $2.40 were taken up. Maybe they didn't bother to check the current share price lol

Commenter

GS

Location

Date and time

March 26, 2014, 10:40AM

Allan are you adding to SBM again today?

Commenter

screen

Location

watcher

Date and time

March 26, 2014, 10:38AM

Are you adding to BBG?

Commenter

Allan

Location

Prahran

Date and time

March 26, 2014, 11:10AM

state governments would fall into a screaming heap if their cash cow housing stamp duty dried up. they are giggling their heads off.

Paying dividend will change the sentiment. Based on their report look like it will happen in the next financial year.Also their gold exploration results looks spectacular and not yet valued by the market.

Commenter

Ronn

Location

Sydney

Date and time

March 26, 2014, 10:29AM

Need to get rid of the active shorter action before any sustained run up!

Commenter

The Fireman

Location

NSW

Date and time

March 26, 2014, 10:50AM

Folks, you have to dig a little deeper into the Financial report - page 51. "As at 31 December 2013, the Group was in breach of its backward looking debt service cover ratio for the December 2013 quarter. Subsequent to 31 December 2013, the Group has received an irrevocable waiver (from Macquarie) for this breach." So the 55,000 ounces of gold at a price of US$1,313 per ounce have been forward sold to satisfy a condition of the restructure. Explains why the share price had been beaten down.

Commenter

Kyle Bass

Location

Date and time

March 26, 2014, 10:53AM

Looks like it already is, up 6% this morning after a dumping yesterday.

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 11:05AM

@Kyle Bass. I hadn't missed the enforced hedging. It's not a lot of debt and I dont think hedging is a negative. I agree it does seem poor that mgmt could let that happen. It needn't have. But IMO, bottomline is BDR is profoundly profitable unlike some other Oz gold miners.

Commenter

Yin or yang

Location

Date and time

March 26, 2014, 12:13PM

@Fireman. It's been a challenging journey. I recall you had a rather large stake. Topped up at lower prices or let it ride?

Commenter

Yin or yang

Location

Date and time

March 26, 2014, 12:48PM

Agree, re-rate is on the cards for some juniors if gold remains at or above $1300. The street is still using $1100-$1150 long term gold as a basis for SP targets. Production at or above guidance, resource upgrades and additional debt repayments are further SP catalysts.

Commenter

Kyle Bass

Location

Date and time

March 26, 2014, 1:29PM

@no banks .. no party!.......Must be good in a cavalier bubble re the futures of other people.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 10:19AM

bulls winning...again.just a fact...don't get angry

Commenter

no banks .. no party!

Location

just a fact...dont get angry

Date and time

March 26, 2014, 10:15AM

lack of a certain character would indicate it is indeed a bullish market of late.

Commenter

screen

Location

watcher

Date and time

March 26, 2014, 11:12AM

lol.true.

Commenter

no banks .. no party!

Location

Date and time

March 26, 2014, 11:52AM

32% below 2007. Go bulls. LOL.

Commenter

Allan

Location

Prahran

Date and time

March 26, 2014, 12:22PM

JBH way undervalued. Maybe 30%.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 10:14AM

What is your basis of this claim?

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 11:02AM

Let's just wait and see what the May Budget does to consumers' spending power. Today's share price might then look very good in comparison.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 11:33AM

Sales up >3% earnings should increase about 10%...Valuation over $30.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 11:38AM

@DraftReader...and....Obvious Q is can they maintain these sales? How will AUD up or down affect sales/prices/buying?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 11:41AM

but your fellow doom talker said it was over priced when he shorted it @ $12 ?

Commenter

Hugo

Location

Date and time

March 26, 2014, 1:45PM

....." fellow doom talker".....haha...

Two different people otherwise there would be no market hey.....

Commenter

JohnBB

Location

Date and time

March 26, 2014, 2:02PM

Last short at $23. Looking good.

Commenter

Allan

Location

Prahran

Date and time

March 26, 2014, 3:47PM

Just clarifying. I don't own it directly, I just think it looks cheap.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 4:06PM

Position vacant: Minister for Infrastructure.

Selection criteria: ability to completely ignore what's needed and only disseminate funds where we get political gain.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 10:10AM

They sacked the head of Infrastructure Australia and they're setting up a parliamentary committee, with Abbot's parliamentary sidekicks to oversee the approval of state infrastructure. It's all about pushing their pet projects. If that were not the case, why does the Vic government refuse to put the East West up for a tried and true cost-benefit test by Infrastructure Australia and why has Abbot already promised to grant it 1.5 billion without the test?

Commenter

Jimmy

Location

Date and time

March 26, 2014, 11:30AM

Federal, state and territory failure for over 30 years...Time for change. We need a dictator.

Told you it looked good. Feeds the sharemarket's hunger for growth stocks.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 10:21AM

Nufarm going up by 77%, what will the share price go up by do you think? from 4.16 to?

Commenter

Broker2014

Location

Date and time

March 26, 2014, 10:03AM

The weather experts say we are moving into an El Nino state by the end of the year, hotter & drier, as if it wasn't hot enough in the southern states last summer with a multitude of records being broken, yet again. There have to be crops for Nufarm to make a profit so it could be struggling next year. Graincorp is another one in for a tough time.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 10:36AM

AUD, Stevens, interest rates, wages, house prices, inflation. Welcome to globalisation where we control nothing, where we lose all our wealth to other countries. What else did we think it'd mean long term?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 10:02AM

you have a dark mind JohnBB. Very dark indeed.

Commenter

screen

Location

watcher

Date and time

March 26, 2014, 10:08AM

@screen...I actually don't. I'm a really positive person otherwise. I do have an ability to see what others don't. Do you have a counter long term outcome of globalisation?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 10:32AM

not other countries. hedge funds and the like. forget countries - they have no power and get their policies from big business. who do you think puts ministers in poer? countries are irrelevant. who do you think is about to fund our $60 odd billion of infrastructure? countries? nope. big business and they will dictate to our governments the terms. just like the catholic church dictates education policy.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 10:39AM

@smilingjack..Agreed. How were we all so dumb to let this happen? Actually I think I know how. It's easy to make really bad decisions when they don't affect us personally. Decisions made now will not take affect for decades. Decisions made twenty years ago are now significant. Why do we pretend to care about Australia's future when it's very clear we as a country don't give a?

Commenter

JohnBB

Location

Date and time

March 26, 2014, 10:47AM

yes, dont take life and work too seriously.

Commenter

screen

Location

watcher

Date and time

March 26, 2014, 11:02AM

...and let's not forget the TPP!

Commenter

MrSteve

Location

Date and time

March 26, 2014, 11:33AM

@screen...."dont take life and work too seriously".....I don't. Please believe me.

We are in a privileged position of having the freedom of that attitude. I'm sure you can imagine many people and situations where you don't have the luxury of not "take life and work too seriously"....

Change is coming and yours and my easy going natures will not survive. We will be forced to be dark.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 12:51PM

@MrSteve...TPP...A complete betrayal of Australia.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 12:59PM

Last night before the Dow opened the FTSE was 70 points up and our SPI futures were up 1 Every time in the last four year when the FTSE was down 70 points our SPI was down at least between 35 and 40 points. What a joke the ASX is. 300 points in 4 years 75 points a year for each year or 1.5% growth. As Geoff Toovey says There's gotta be an investigation.

Commenter

Davidson

Location

Sydney

Date and time

March 26, 2014, 9:59AM

your not suggesting world markets are manipulated are you? say it aint so. whats next - bankers are corrupt?there wont be any investigation I can assure you. do you know what our treasurers wife does for a living and who she works for?

Agree, outsource responsibility for trains and trams to the Swiss. After all, they have an excellent public transport system.

Commenter

Viking

Location

Sydney

Date and time

March 26, 2014, 10:09AM

I used to live in dulwich hill right where the light rail will be. it took me 15 minutes to ride into the city. when I lived there in 2000 there was talk it would be happening very soon. good thing I didnt wait around.whats a monthly pass / ticket cost in sydney?in stockholm I paid $100 a month for awesome public transport amazing. it absolutely craps over anything in stralya including trains that travel at 200kph to the airport ( with luggage racks and free wi fi no less ) what will they think of next.

Commenter

smilingjack

Location

Date and time

March 26, 2014, 11:31AM

Eds...where do you get your information from??

SPI futures seem to be pointing up everywhere....Please check...

Commenter

mirage

Location

Date and time

March 26, 2014, 9:56AM

Yes, I'm puzzled by that also :|

Commenter

JJ

Location

NSW

Date and time

March 26, 2014, 10:29AM

The futures market reopens at 9:50

Commenter

BuyHighSell Low

Location

Date and time

March 26, 2014, 11:05AM

clearly incorrect

Commenter

Bewildered

Location

Date and time

March 26, 2014, 11:12AM

SPI futures had been in positive territory from midnight last night as per the ASX Market Overview chart on their official website so don't know where the negative figures came from. Does anyone know?

Commenter

Jonaze

Location

Sydney

Date and time

March 26, 2014, 1:13PM

" Futures trading suggests shares will open lower despite overnight gains on Wall Street " - maybe, but as has often been ted by readers on this blog, the SPI is often a poor indicator of how the trading day actually behaves. I expect we will see an up day today, despite a negative SPI lead.

While there's certainly a need for zero-tolerance policing and increased discipline in Australian schools - and in Australian society in general - compared to so many countries we're not that bad at all. But you're right, I'd love to see some Singapore-style law and order applied here.

Commenter

Dr No

Location

Sydney

Date and time

March 26, 2014, 10:54AM

Can someone in the statosphere please explain how the AUD is continuing to get this level of support??...Would have thought with tension easing in europe, US markers turning positive and China facing headwinds we'd be battling but not to be...not to mention gold is up as welll...confused...

Commenter

normo

Location

Date and time

March 26, 2014, 9:14AM

the majority economists were wrong again.

Commenter

brian

Location

Date and time

March 26, 2014, 9:32AM

Pretty easy Normo. Market is factoring in rising rates here. Not so sure all the property spruikers are though...

Commenter

KC

Date and time

March 26, 2014, 9:45AM

The surprising strength of the $A probably is linked to the Aussie economy. Despite the sense of dread the Libs are trying to sow to justify deep cuts to every program, service and benefits, the Aussie economy is doing well on every level when compared to the rest of the world. Our debt is low by world standards, our GDP is still growing and our level of unemployment is low by world standard and of course our economy supports a higher interest rate than most other developed economies making us attractive to those with cash. I expect all of that to change markedly after the May Budget. Many of the strengths you see now will disappear when Hockey hacks the economy by withdrawing at least $30b in gov't expenditure.

Commenter

mitch of ACT

Location

Date and time

March 26, 2014, 9:45AM

Confusing how? The geo-political problems have no impact on the AUD carry trade. RBA and Australian leading economists have indicated that interest rates in this country in the future are heading north and not south. I don't think gold has a direct correlation to the AUD specifically, China's headwinds have already been factored in to the price, recent events in the news are related to property or haven't been as bad as expected. This balances the US easing etc. Take a longer view of the aussie coming from $1.10 and you'll see its right where its suppose to be at the moment I think.

Commenter

DraftReader

Location

syd

Date and time

March 26, 2014, 9:49AM

Even though there's uncertainty regarding the health of our major exports, we're still seen as a healthy economy with low debt and a sustainable government spending policy. Very few Western countries are in such a position nowadays. That's why we're still a "safe haven".

Commenter

Dr No

Location

Sydney

Date and time

March 26, 2014, 9:54AM

........"please explain how the AUD is continuing to get this level of support??".......

More Chinese stimulus.

Commenter

JohnBB

Location

Date and time

March 26, 2014, 9:58AM

Reasons appear related to the Chinese Government providing support to a weakening economy and the weakening $US. I believe this is only temporary and $A will continue its downward trajectory.

Commenter

Viking

Location

Sydney

Date and time

March 26, 2014, 10:10AM

@Mitch,if the expectation enunciated in your last sentence were correct,the dollar would not be getting the support that it is,and the expectation that interest rates were going higher would not be prevalent.